Mortgage bankers relied on MERS to be responsible for all of the documentation used in the home buying process, and as a result few in the industry looked at the paper work after the fact, said Becky Walzak, president and CEO at RJB Walzak Consulting Inc.
Walzak believes judges in special foreclosure courts in Florida eventually grew tired of seeing files with missing or incomplete paperwork.
Speaking at the Mortgage Bankers Association's convention in Atlanta, she noted that two foreclosure class action lawsuits have already been filed in two states and more are likely on the way.
The consultant is urging mortgage bankers to go back and examine how they conduct business, especially involving critical paperwork. "Technology is great," Walzak said, but it cannot mirror a process that does not work.
